The market value of a property is $720,000. the equalization rate for the local municipality is 9%. what is the assessed value

assessed value = $64,800

Explanation:

given data

market value = $720,000

equalization rate = 9%

to find out

What is assessed value

solution

we get here assessed value that is express as

assessed value = market value × equalization rate   1

put here value we get, assessed value

assessed value = $720,000 × 9%

assessed value = $720,000 × 0.09

assessed value = $64,800

Producers will either exit the market or produce less tangerines

Explanation:

If the marginal cost of producing tangerines is more than the price of producing them, it means that the supply of tangerines is quite high which is why the market reduced the price of tangerines.

The producers in the market will therefore act to reduce supply. They will do this by either reducing the number of producers so that the smaller number of producers will produce less or they will reduce production jointly in order to reduce supply. As this is a perfectly competitive market, the former scenario is more likely.